A federal housing report is urging Ottawa to support Sharia-compliant mortgages as a way to make homeownership more accessible and inclusive for Canada’s Muslim population. Blacklock's Reporter says the Canada Mortgage and Housing Corporation commissioned study argued traditional lending models often exclude communities with cultural or faith-based restrictions.“To counteract this, there is an imperative need to foster more inclusive and equitable housing policies that recognize and celebrate cultural diversity,” said the Halal Housing Final Report, completed by consultants on March 14, 2024. It emphasized that policies should better reflect “the rich cultural mosaic of Canadian society.”.Sharia-compliant or halal mortgages avoid direct interest payments, which are prohibited under Islamic law. While a few such financing products exist in Canada, the report noted they remain limited to individual transactions and are not available at commercial scale.Cabinet, in its April 18, 2024 federal budget titled Fairness For Every Generation, acknowledged the issue and said it was “exploring new measures to expand access to alternative financing products like halal mortgages.” The budget did not commit to implementation.The Halal Housing report followed a 2023 federal grant to the Islamic Family Social Services Association of Edmonton to examine Islamic financial products. .The cost of the CMHC study was not disclosed, but was undertaken due to the “anticipated expansion of this initiative across Canada.”“The halal housing lab represents a pivotal step in addressing the need for affordable, culturally appropriate housing within Muslim communities in Canada,” the report stated. It added that housing development incorporating Islamic values could become a model of inclusivity and sustainability..Canada’s Muslim population stands at 1.8 million and is among the fastest growing groups in need of affordable housing, according to the report.Parliament has yet to approve halal mortgages. Bloc Québécois MPs have opposed the idea, calling it a troubling precedent. “This is a religious exception that goes well beyond accommodation,” said Bloc MP Martin Champoux. “The introduction of an element of Sharia law into the Canadian legislative regime would be a serious precedent.”
